7. LEGAL ACTIONS

6 Months Ended

Jun. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

LEGAL ACTIONS

During March 2013, the Company was named in an action pertaining to the 75% working interest in the Ownbey Lease. Subsequent to the Company’s purchase of the assets and the termination of the operator a mechanics lien was filed against the property claiming approximately $267,000 in fees are due to the previous operator. An action is pending in the District Court of Chautauqua County, Kansas, captioned Aesir Energy, Inc. vs. American Resource Technologies, Inc.; Nancy Ownbey Archer; Jimmy Stephen Ownbey; Robbie Faye Butts; Tree Top Industries, Inc.; and TTII oil & Gas, Inc. A partial order of foreclosure was granted on July 9, 2014 in favor of TTII. The plaintiff's petition for foreclosure of the lien was dismissed because the lien statement was deficient and therefore invalid and unenforceable under Kansas law.  A telephone status conference is scheduled for the September 10, 2014 regarding the plaintiff's remaining claim.